How to Set Up a Turkey Company in Vietnam 2025

Vietnam’s robust economic growth, strategic location in Southeast Asia, and investment-friendly policies make it one of the most attractive destinations for foreign businesses. As of 2025, companies from across the globe, including those from Turkey, are increasingly setting up operations in Vietnam. The Turkish company community is particularly interested in expanding its footprint in Vietnam, given the growing bilateral trade, shared interests in sectors like manufacturing, textiles, and construction, as well as the opportunities in the Vietnamese consumer market.

In this comprehensive guide, we’ll walk you through the steps involved in setting up a Turkish company in Vietnam, including legal requirements, business structures, and key considerations for a successful venture.

Why Choose Vietnam for Your Turkish Company?

Vietnam is emerging as a key hub for foreign businesses in Southeast Asia, and Turkish investors are increasingly eyeing it as an attractive location for their operations. Here are some of the key advantages of establishing a Turkish company in Vietnam:

• Strategic Location: Vietnam is strategically located in Southeast Asia, offering access to key regional markets such as China, Thailand, Indonesia, and the rest of ASEAN.

• Growing Economy: Vietnam is one of the fastest-growing economies in the region, with robust GDP growth and increasing foreign direct investment (FDI) inflows.

• Young and Educated Workforce: Vietnam boasts a youthful population with a median age of around 30 years, making it an attractive labor market with relatively low labor costs.

• Free Trade Agreements (FTAs): Vietnam has signed numerous free trade agreements, including with the European Union, ASEAN, and other global trade partners, which benefits foreign investors through reduced tariffs and enhanced market access.

• Government Incentives: The Vietnamese government offers a range of tax incentives and investment subsidies in key sectors such as technology, renewable energy, and manufacturing, which are ideal for Turkish investors looking to expand in these areas.

Step-by-Step Guide to Setting Up a Turkish Company in Vietnam

1. Choose the Right Business Structure

The first step in setting up your company in Vietnam is deciding on the most suitable business structure. Foreign investors typically choose from the following options:

• Wholly Foreign-Owned Enterprise (WFOE): A WFOE allows a Turkish company to have full ownership of its operations in Vietnam, making it one of the most common choices for foreign businesses.

• Joint Venture (JV): A partnership between a Turkish company and a local Vietnamese partner. This structure can provide access to local market knowledge and business networks.

• Branch Office: A branch office allows a Turkish company to establish a physical presence in Vietnam without creating a separate legal entity.

• Representative Office: This non-commercial entity can engage in activities such as market research, promotion, and liaison but cannot directly generate revenue or enter into contracts.

2. Register Your Business with the Vietnamese Authorities

Once you’ve selected your business structure, you will need to register your company with the Vietnamese Department of Planning and Investment (DPI). The registration process involves several key steps:

• Company Name Reservation: The first step is to ensure that your company name is unique and complies with Vietnamese naming regulations.

• Prepare Documents: You will need to prepare various documents, including the company charter, identification documents for the directors, and proof of the company’s legal status in Turkey.

• Submit Application: Submit your registration application to the DPI, including all required documents. The approval process typically takes between 7 to 15 business days.

• Obtain Business License: Upon approval, you will receive your Business Registration Certificate, officially allowing you to operate in Vietnam.

3. Open a Corporate Bank Account

To legally operate and conduct business transactions in Vietnam, you will need to open a corporate bank account. The account is required for business transactions such as paying taxes, employee salaries, and making payments to suppliers. There are many reputable local and international banks in Vietnam, such as Vietcombank, VietinBank, and HSBC, that offer corporate banking services.

4. Hire Employees and Comply with Labor Laws

One of the advantages of doing business in Vietnam is access to a skilled and cost-effective labor force. Vietnam’s workforce is young, well-educated, and growing, making it an attractive destination for businesses seeking competitive talent.

However, it’s important to comply with Vietnam’s labor laws, which regulate employment contracts, social insurance, wages, and working conditions. Companies must also ensure that all foreign employees have the necessary work permits.

5. Understand Tax and Accounting Obligations

Vietnam’s tax system can be complex, so it’s crucial to understand the corporate tax requirements to avoid penalties. Key taxes for foreign investors in Vietnam include:

• Corporate Income Tax (CIT): The standard CIT rate in Vietnam is 20%, although some sectors may benefit from tax incentives.

• Value-Added Tax (VAT): The VAT rate in Vietnam is typically 10%, though certain goods and services may be eligible for reduced rates.

• Personal Income Tax (PIT): Foreign employees working in Vietnam are subject to PIT, and businesses must comply with the country’s social insurance regulations.

Foreign companies must also ensure they maintain proper accounting records and file their tax returns annually with the General Department of Taxation.

6. Obtain Relevant Licenses and Permits

Certain business sectors in Vietnam require additional licenses or permits. For example, industries such as finance, education, healthcare, real estate, and logistics are heavily regulated. Turkish investors must ensure they understand and comply with the licensing requirements specific to their industry.

7. Prepare for Expansion and Market Entry

Once your company is set up, you should consider strategies for market entry and growth. This includes researching consumer behavior, creating effective marketing strategies, and building relationships with local business partners. Networking with local chambers of commerce and business associations can also provide valuable insights into the Vietnamese market.

Challenges to Keep in Mind

While Vietnam offers many opportunities, Turkish investors may face some challenges, such as:

• Language and Cultural Barriers: The official language in Vietnam is Vietnamese, and while many people speak English, it is important to consider the language barrier in business negotiations.

• Regulatory Complexity: Navigating Vietnam’s complex regulatory environment can be challenging without local legal and business expertise.

• Local Competition: The Vietnamese market is competitive, and understanding local consumer preferences and market dynamics is key to achieving long-term success.

Why Choose La Défense Law Firm for Your Foreign Investment in Vietnam?

Starting a business in Vietnam as a foreign investor can be a complex process, but with the right legal guidance, it becomes much easier. La Défense Law Firm is a leading provider of legal services for foreign companies looking to establish a presence in Vietnam. Their team of experienced professionals specializes in foreign investment law and provides strategic advice to ensure your business complies with all local regulations and operates smoothly.

Key Reasons to Choose La Défense Law Firm:

• Deep Expertise in Foreign Investment Law: With years of experience helping foreign businesses, La Défense offers in-depth knowledge of Vietnam’s legal landscape and can help you navigate all regulatory requirements.

• Tailored Legal Solutions: Whether you’re setting up a wholly foreign-owned enterprise (WFOE), a joint venture (JV), or a branch office, La Défense provides personalized legal solutions to suit your business needs.

• Comprehensive Legal Services: La Défense handles every aspect of your foreign investment, including business registration, tax planning, licensing, employment law, and dispute resolution.

• Local Market Insight: La Défense has extensive experience in the Vietnamese market and can offer valuable insights into local consumer behavior, industry trends, and government incentives.

• Reliable and Professional: La Défense Law Firm is known for its professionalism, reliability, and transparent approach to legal services. Clients trust La Défense for its high level of integrity and commitment to their success.

If you’re a Turkish company interested in expanding into the Vietnamese market, La Défense Law Firm is your trusted partner in ensuring a seamless, legally compliant, and successful investment journey.

Read more at: